Terramin Australia Limited · ASX:TZN
Terramin Australia — Shareholder Meeting (April 2010)
33 slides from Terramin Australia's shareholder meeting presentation, Apr 23, 2010
Slide 1: Focused on Zinc: CEO's AGM Presentation
TERRAMIN AUSTRALIA LIMITED For personal use only Focused on Zinc CEO’s AGM Presentation 23 April 2010
Slide 2: Important information
Important information For personal use only The information in this presentation is designed as an aid to a spoken explanation. It is not to be considered without that explanation. It is not intended to guide any investment decisions in Terramin Australia Ltd. The information is intended as a guide
Slide 3: Contents
Contents For personal use only Corporate Introduction & Strategy Achievements for 2009 Performance of Angas Regional Exploration Progress at Oued Amizour Conclusions TERRAMIN AUSTRALIA LIMITED SLIDE No. 3
Slide 4: Corporate Introduction & Strategy
For personal use only Corporate Introduction & Strategy TERRAMIN AUSTRALIA LIMITED SLIDE No. 4
Slide 5: Terramin is ...
Terramin is ... For personal use only ...a low zinc cost producer with a world class project Angas Zinc Mine - South Australia (100%) at nameplate capacity with low cash costs Oued Amizour Project – Algeria (65%) in final feasibility for a 2 ~ 4Mtpa mine Menninnie Dam Project - South Austr
Slide 6: Fast facts
Fast facts For personal use only Market Capitalisation: $125m Shares on Issue: 158.4m Options Outstanding: 15.9m Cash $20m and Debt $23m Convertible Notes: 5 Year $5.0m at $2.21/share 5 Year US$10.0m at VWAP ($1.70/share minimum) 5 Year US$20.0m at VWAP Shareholders (over 4000) N
Slide 7: Strategy
Strategy For personal use only Finding and developing base metal mines in close proximity to infrastructure with low capital and operating costs To grow the company by building on existing portfolio through focused exploration seeking to acquire base metal projects that meet criteria F
Slide 8: 2009 was a year of delivery…
2009 was a year of delivery… For personal use only Angas mine completed first full year of production production on forecast nameplate capacity achieved late 2009 and maintained in the March quarter optimisation initiatives ongoing Tala Hamza project advanced pre-feasibility study comple
Slide 9: Performance of Angas Zinc Mine
For personal use only Performance of Angas Zinc Mine TERRAMIN AUSTRALIA LIMITED SLIDE No. 9
Slide 10: Angas in 2010
Angas in 2010 For personal use only 2010 targets 400,000t ROM 48~50,000t zinc concentrate 18~20,000t lead concentrate Realised zinc price: US$2,300/t for June half 5 year mine life on current Probable Reserve Growing positive cashflow to support broader corporate objectives Note: See s
Slide 11: Production ramp up
Production ramp up For personal use only Mill throughput increased consistently during 2009 Reached nameplate capacity of 400,000tpy in the December quarter Zinc concentrate production down slightly in the March quarter due to lower head grade Quarterly Ore Treated (LHS) & Concentrate Produced
Slide 12: Angas Mine underground progress
Angas Mine underground progress For personal use only Decline at 220m below surface Development on six levels Multiple stopes for mining and grade flexibility TERRAMIN AUSTRALIA LIMITED SLIDE No. 12
Slide 13: Fleurieu Regional Exploration
For personal use only Fleurieu Regional Exploration TERRAMIN AUSTRALIA LIMITED SLIDE No. 13
Slide 14: Objectives
Objectives For personal use only Extend Angas Mine life Find new mines TERRAMIN AUSTRALIA LIMITED SLIDE No. 14
Slide 15: Regional potential
Regional potential For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 15
Slide 16: VTEM Survey Area
VTEM Survey Area For personal use only Clear Objectives: Identifying anomalies to follow up in the future Final target generation following groundwork to enable prioritisation Note – Geologically recent shallow cover containing no historical discoveries TERRAMIN AUSTRALIA LIMITED Area to be fl
Slide 17: Example of Survey Results
Example of Survey Results For personal use only TERRAMIN AUSTRALIA LIMITED SLIDE No. 17
Slide 18: Early exploration results
Early exploration results For personal use only A recently completed first pass drilling programme generated encouraging results High grade gold at Lady Jane 3m @ 11.1g/t from 1m depth 13m @3.2g.t from 80m depth Wide intersections of anomalous copper and gold at historic Preamimma mine F
Slide 19: Progress at Oued Amizour Project
For personal use only Progress at Oued Amizour Project TERRAMIN AUSTRALIA LIMITED SLIDE No. 19
Slide 20: Project ownership
Project ownership For personal use only Exploration Permit 5225PE (current until Aug 2011) 100% owned by Western Mediterranean Zinc (“WMZ”) incorporated private Algerian company WMZ Ownership: 65.0% Terramin 32.5% ENOF (Algerian Govt. company) 2.5% ORGM (Algerian Govt. company) Terramin is
Slide 21: Oued Amizour….
Oued Amizour…. For personal use only location is only one competitive advantage…. TERRAMIN AUSTRALIA LIMITED SLIDE No. 21
Slide 22: Competitive advantages
Competitive advantages For personal use only Infrastructure deep water port Less than 15km from the deposit international airport plentiful water on lease Cheap power and fuel (US$) power approximately 4c/kWh low cost fuel – diesel – 20c/l Low cost mining Block cave now selected
Slide 23: The Tala Hamza Deposit is….
The Tala Hamza Deposit is…. For personal use only ….the immediate target…. TERRAMIN AUSTRALIA LIMITED SLIDE No. 23
Slide 24: The Tala Hamza deposit
The Tala Hamza deposit For personal use only Mineral Resource Measured, Indicated and Inferred 68.6 Mt at 4.6% Zn, 1.1% Pb As at November 2009 Resource inclusive of Reserve Ore Reserve Probable 24.1Mt @ 5.9% Zn, 1.7% Pb As at October 2008 Note: See slides 32 and 33 for complete JORC Statement TERRAM
Slide 25: North-South section
North-South section For personal use only Grades are variable but high grade zones offer early cashflow optimisation Footwall is competent – Hangingwall suitable for the block cave mining method Geotechnical studies indicate hanging wall will cave readily Modelling concludes cave will propag
Slide 26: Feasibility Progress
Feasibility Progress For personal use only Prefeasibility study completed in early 2009 Recommended considering a block cave mine Preliminary capex of US285M for 2.0Mtpa mine Estimated production about 200kt zinc concentrate and 40kt lead concentrate at the 2.0Mtpa production rate Block ca
Slide 27: Proposed Mining Lease ….
Proposed Mining Lease …. For personal use only TSF Declines Plant Deposit ….and surface infrastructure…. TERRAMIN AUSTRALIA LIMITED SLIDE No. 27
Slide 28: 2010 Objectives
2010 Objectives For personal use only Finalise Definitive Feasibility Study [Q3] Board approval Submit Mining Lease Application Complete permitting process [Q4] Tender process for civils and decline development Progress project financing Site mobilisation – year end Re-commence regio
Slide 29: Project ranking
Project ranking For personal use only Tala Hamza has the potential to be a top ten zinc producer.... Zinc Mine Output (Zn Metal - 000's mt) 700 600 500 400 300 200 100 0 Red Dog Rampura Century Antamina Mt Isa San Tala Tara Lisheen Aguchha (multiple Cristobal Hamza mines) (4 Mtpa) TERRAMIN AUSTRALIA
Slide 30: Conclusion
Conclusion For personal use only Terramin is well positioned for the future: Enhanced board capability with major project oversight and delivery experience Building corporate capability experienced operations and project management team Angas Zinc Mine performing well cash flow to suppor
Slide 31: Questions
For personal use only Questions TERRAMIN AUSTRALIA LIMITED SLIDE No. 31
Slide 32: Resources & Reserves Feb 2010
Resources & Reserves Feb 2010 For personal use only Table of Resources Table of Reserves These tables should be read in conjunction with the accompanying notes TERRAMIN AUSTRALIA LIMITED SLIDE No. 32
Slide 33: Notes to Reserves & Resources
Notes to Reserves & Resources For personal use only 1. Resources for Angas are estimated at a cut off of 2% Pb+Zn 2. Resources for Tala Hamza are estimated at a cut off of 2.5% ZnEq. The Zinc Equivalence formula for Tala Hamza is %ZnEq = %Zn + 0.59 x %Pb and is based on long term predicted prices at
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